BRITISH CAPITAL

Grey River Argus, 2 December 1938, Page 5

BRITISH CAPITAL

Refusal to Dominions SIR H. PAGE CROFT'S SENSIBLE CRITICISM. WELLINGTON November 30. The influence of British investments in the overseas Dominions on Empire trade and security was referred to by the Prime Minister (the Rt. Hon. M. J. Savage), when invited in an interview this evening to comment on the cable message from London reporting Sir Henry Page Croft as having stated that nothing was being done to stimulate a movement of capital to the Dominions. “At one time,” said Mr. Savage, “it was said that trade follows the flag but now everyone realises that it follows investments. “It is just common sense,” Mr. Savage said, after reading the statement. “The investment of British capital in the Dominions is the foundation pf migration, defence, Empire trade, and Imperial unity. It definitely lays the foundation of migration. For the same reason it makes the defence of the British Empire possible, it definitely expands the trade of the British Commonwealth, and it definitely makes for Imperial unity. The Britain of the future will be spread throughout the Dominions.” LONDON, November 29. Sir Henry Page Croft, chairman and managing director of Henry Page and Company, Ltd., in a speech at the Empire Industries Association, said it was utter folly that nothing had been done to stimulate a movement of capital to the Dominions. Britain, he said, had given a loan of £10,000,000 to Czechoslovakia, but quibbled over any substantial assistance for the promotion of the Dominions, who were her best customers. The Duke of Buccleuch said that he hoped it was not too late to reverse the policy of foreign investment in favour of the Dominions.

Transfers of N.Z. Funds Unpatriotic policy. WELLINGTON, November 30. The (postion treated in the Dominion by the reported transfer of funds overseas, and what was defer scribed as the over-importation of goods, with consequent effect on sterling funds in London,, were discussed at the annual conference of Xhe 1 New Manufacturer’s Federation in Wellington to-day. Motions urging a restriction of imports of consumer goods of a kind that could be manufactured in the Dominion were tabled but did not meet with unanimous support, and a final motion submitted on this question was defeated on the voices. Mr S. L. Wright (Christchurch) moved the following motion: “The conference deplores the action of some people in transferring funds overseas, and in view of the difficulties confronting the Dominion at the present time because of this and over the importation of goods, this conference urges the Government immediately to take steps to control the situation and to restrain such imports of consumer goods as can well be manufactured in the Dominion.” “The transfer of funds overseas is endangering the whole fabric of the Dominion, and over-importation of goods is in the same category.” Mr Wright said. “I feel we should strengthen the hand of the Government by letting it, understand that we think it should take steps to bring things 'under control. Besides being manufacturers, we are also large importers of raw material. Therefore, I think we should emphasise that imports of consumer goods should fie restricted. That would reduce the drain on our London funds, and stimulate the demand for our locally-manu-factured goods.”

Seconding the motion, Mr A. M. Hollander (Christchurch) said finance for local production was being decreased because of the situation, which proved the necessity for making some proposal that would show manufacturers were aware of the dangers in which industry was being place£ The sheer disloyalty of sending abroad New Zealand funds was a matter which affected very closely the finances of New Zealand industry. “It is very easy to stres s the obvious, and we should always accept the abvious with a great deal of reserve,” said the immediate past-president if the federation, Mr D. Henry (Auckland). “Speakers have assumed that all money in New Zealand has been made in New Zealand; but a great deal of money used in New Zealand has been brought into this country. If investors have sent money here for investment here, are you going to blame them

for taking their money somewhere ■else?” The president, Mr J. T. Spears: I would like to see the resolution substantially confined to consumer goods. Mr C. V. Smith (Dunedin): We have no idea just how much jnoney has gone out of the country. “ Mr Wright submitted an amendment of hi s motion as follows: “In view of the difficulties confronting the Dominion at the present time, because of the over-importation of goods, this conference urges the Government immediately to take steps to control the situation, and restrict such imports of consumer goods as can yell be manufactured in the Dominion.” Mr Henry: The question is what purpose such a resolution will serve, in view of the statement by Mr Sullivan in opening the conference. The Government intends to control the position, and it has already stated that there is over-importation of goods. , Mr Wright: The Gqvernment tomorrow can. take steps to control the exchange without benefiting manufacturers one iota. We want to see that the steps taken will benefit the manufacturers. It is up to us to try to strengthen the Minister’s hands. Further opposition to the motion and the amendment was expressed, and consideration of the subject was deferred. On the resumption, Mr Wright submitted the following motion: “That as the economic problems at present confronting the Dominion, particularly the "position of the balance of funds available in London, indicate the necessity for restricting or regulating importations, the federation welcomes the indication given by the Minister for Industries and Commelrce (the Hon. D. G. Sullivan) in his address to the conference that the Government proposes to take steps to deal with the situation, arg wishes to record the opinion that such steps as may be decided upon should be directed toward a restriction of imports of consumer goods of a kind that can be maunfactured within the Dominion.” The motion was lost on the voice?.